Novartis’ leading pharmaceutical research meets local, global needs
With a strategy to lead through science-based innovation, global pharmaceuticals giant Novartis is optimistic about China as a strong market for investment and future growth, particularly for healthcare, according to its top executive.
“We believe that focusing on science will produce better long-term results for patients and the people who invest in our company,” said Joerg Reinhardt, chairman of the Novartis board of directors, when he attended the 2017 International Business Leaders’ Advisory Council for the Mayor of Shanghai last week.
Last year, Novartis invested more than $9 billion into the research and development of new drugs and medical devices. The figure was about $2 billion 20 years ago.
“We have close to 23,000 people in R&D worldwide working around the clock on more than 300 research projects and over 500 clinical trials,” Reinhardt said.
He said the strategy has paid off, as the company has become a world leader in oncology and heart disease.
Some of its latest products were approved by the food and drug administrations in China and the United States earlier this year.
“We also have a strong neurology franchise and have built our generics and biosimilars division, Sandoz, into a technology leader with a global footprint,” Reinhardt said.
“At Novartis, we want to be a trusted leader in changing the practice of medicine. We believe that values such as innovation, collaboration, quality, integrity, performance and courage — which we have defined as distinct cultural pillars within Novartis — must be cultivated.”
Jay Bradner, president of the Novartis Institutes for BioMedical Research, the innovation engine of the company, said their R&D is “ambitious, collegial and increasingly open to ideas and technologies from innovators around the world”, with a focus on “addressing some of the biggest health challenges the world is facing today”.
“We are executing heroic discovery efforts in totally unchartered waters and Novartis is a company that is very comfortable in open water,” he said.
The Cambridge, Massachusetts-headquartered institutes have about 6,000 scientists and physicians in their major research sites in the US, Switzerland and China.
The China Novartis Institutes
At Novartis, we want to be a trusted leader in changing the practice of medicine.” Joerg Reinhardt, chairman of Novartis
for BioMedical Research, founded in Shanghai’s Zhangjiang Hi-Tech Park in 2007, is one of the major global R&D centers for Novartis and its innovation hub for Asia.
“It’s a true discovery center for Asia, working to find new therapies for diseases that affect the Asian people the most, such as liver disease, respiratory disease, and certain cancers,” said Reinhardt.
The CNIBR is working with more than 40 Shanghai biotech and contract research organizations, and has established cooperation with universities, research and clinical institutes in China and other Asian countries.
One of its achievements is a new compound for a potential cancer treatment, which entered clinical trials late last year. Reinhardt said he looks forward to having more drug candidates coming out of the company’s pipeline in Shanghai soon.
“Talent is one critical factor for innovation. Talented people and their ideas drive drug discovery,” said CNIBR general manager, Li En. “Here we have rich pool of talent available in the country, including welltrained returnee scientists and local graduates from top universities and institutes.”
The center has invested significantly in personnel recruiting, training and development. Its new R&D campus in Shanghai currently has about 600 R&D scientists and has built multiple platforms for innovative drug discovery.
Chairman Reinhardt said that drug development and the regulatory environment is improving in China.
The Chinese government has rolled out significant reforms to its healthcare system over the past decade, and the Healthy China 2030 Planning Outline, approved last year, will make the health industry a mainstay of the national economy, bringing China to the forefront of cutting-edge medical research, he said.
“China has the infrastructure, talent and government support, as well as high medical needs due to an aging population and rising chronic diseases, to be a thriving market for healthcare innovation.”
China is the second-largest pharmaceuticals market in the world after the US, and its value is estimated to reach $315 billion by 2020. More than 95 percent of China’s population has access to health insurance.
The IBLAC for the Mayor of Shanghai started in 1989, inviting leading entrepreneurs to share ideas and give advice on the city’s modernization and opening-up.
This year marks the fifth year that Reinhardt has taken part in the annual event. He said Novartis is committed to continuous investment in China by expanding its R&D in the country.
Reinhardt called for more preferential policies for innovative companies that bring direct or indirect value to society, and suggested the city should attempt a more flexible reimbursement drug list to make innovative drugs available for patients and meet their needs more quickly.
“There is a lot going on in terms of basic discoveryoriented research, especially in Shanghai, but there is a gap in terms of translational research, especially on the clinical side, where there is not enough clinical expertise and capacity for early clinical trials,” said Reinhardt.
He suggested the government support technology commercialization to enable the biotech sector to develop products further.